Overview
This section establishes the regulatory framework for implementing the Service Contract Labor Standards (formerly the Service Contract Act of 1965) and related labor laws within federal service contracts. It serves as the bridge between federal procurement policies and the statutory requirements enforced by the Department of Labor.
Key Rules
- Statutory Foundation: Implements 41 U.S.C. chapter 67, known as the Service Contract Labor Standards.
- FLSA Integration: Incorporates applicable provisions of the Fair Labor Standards Act of 1938 regarding minimum wage and overtime.
- Regulatory Adherence: Mandates compliance with specific Department of Labor regulations, specifically 29 CFR parts 4, 6, 8, and 1925.
- Policy Scope: Prescribes the specific policies and procedures agencies must follow to ensure service employees are protected under federal law.
Practical Implications
- Contracting officers must use this subpart to determine how to apply wage determinations and fringe benefit requirements to service employees.
- It ensures that federal contractors compete on a level playing field by preventing "wage busting" through the enforcement of standardized labor rates and benefits.